DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT: INSTITUTE A CONSOLIDATED BUDGET PROCESS
HABC does not prepare a comprehensive budget for board review that includes all funding sources and all programs. Without a comprehensive budget, it is extremely difficult to understand the true cost of any program or activity since such functions may be funded through multiple sources. In FY2000, HABC faced a budget deficit of $8 million, and HCD owed $15 million of borrowed Community Development Block Grant (federal) funds.
Establish an annual, consolidated budgeting process that examines all agency sources and uses.
Estimated Annual Impact:
Improved financial accountability.
Estimated Implementation Costs:
Barriers to Implementation:
Conduct a series of ‘board workshops’ wherein the board can understand the different sources and uses of agency funds. Train staff where appropriate.
Consistent with this recommendation, HABC should prepare regular monthly income/expense reports, with accompanying narrative explanations of variances, for each major program/fund. This recommendation assumes the creation of a CFO position, without which the institution of a consolidated budget process would be difficult (see Recommendation 1A – 1-E).